Hyundai has launched its most serious attack yet on the small-car market with the release of the five-door i30 hatchback priced from $18,990.

Hyundai's i30 is a cheap diesel entry

The i30 also includes a diesel priced from just $21,490, or $6500 less than its nearest rival and "the best value diesel in Australia", according the Hyundai sales and marketing director Kevin McCann.

In pricing the i30 from $19,000 - the Toyota Corolla starts at $20,500 - Hyundai has resisted offering as standard the entire suite of safety features, as Subaru has done with its Impreza.

Instead, Hyundai has bundled them in its "Protectz" pack.

For $1790, the pack adds stability and traction control, and side and curtain airbags, to the base-model SX. The mid-range SLX has six airbags standard, adding stability and traction control for an extra $990.

The range-topping SR, which starts at $26,490, has all the safety items standard.

The 1.6-litre turbo-diesel engine costs $2500 more than its petrol counterpart. What it gives away in kilowatts - 85 versus 105 for the petrol engine - it more than makes up for in torque, with 255 Nm versus 186, making easy work of hills.

The diesel has been officially tested at 4.7 L/100 km. All i30s come with air-conditioning, four power windows, remote keyless entry with alarm and an audio system that includes plugs for an iPod, a USB stick and an auxiliary jack.

Hyundai Australia managing director Steve Yeo wants to break down the resistance it faces moving from being the price leader in small cars to offering competitive specifications and world-class quality.

"We have a big challenge to change our brand image," Mr Yeo said, adding that research showed potential customers were still hesitant about Hyundai, but 60 per cent to 70 per cent of people who test-drove them bought the car.